Hostel operator saw losses fall to £500k, 1.5p/share
Companies: Safestay Plc
Shares in hostel operator Safestay jumped 3.2% on Monday after the micro cap announced a significant jump in revenues to £7.4m, up 85% YoY, and a reduced loss after tax to £500k in its full-year results.
The AIM-listed firm reported EBITDA of £2.2m and loss of 1.5p/share, down from 2.5p last year. The strong growth in sales came from increased demand in Edinburgh and Holland Park in London.
During the year, the firm also completed the sale and leaseback of Elephant & Castle and Edinburgh hostels raising £12.6m in cash, whilst agreeing on a new £18.4m 5-year debt facility with HSBC.
Chairman Larry Lipman said Safestay was "carving out its own unique brand positioning", and expanding significantly:
"The business has expanded significantly and the systems and infrastructure to support this growth are in place and are capable of managing current capacity as well as our future plans for expansion.
Within the premium hostel sector, Safestay is carving out its own unique brand positioning. The appeal of the brand is based on offering a combination of safety, style and comfort in good city centre locations. A key indicator is repeat bookings from school and college groups coming every year to visit the UK."
